LEIDEN, Netherlands, July 4, 2005 (PRIMEZONE) -- Pharming Group N.V. ("Pharming" or "the Company") (Euronext:PHARM) announced today that it will receive a milestone payment from Laboratorios del Dr. Esteve, S.A. ("Esteve"). The milestone payment relates to the clinical development of recombinant human C1 inhibitor (rhC1INH) in Phase III trials. The Company also provided an update on the licensing strategy of rhC1INH for key commercial markets.
Pharming and Esteve have a partnership on the development, marketing and sales of rhC1INH in Spain, Portugal and Greece. Under the agreement, Pharming is to receive milestone payments, royalty payments and contributions towards research and development costs for rhC1INH. The milestone payment from Esteve will be recognized as revenues in second quarter 2005.
Pharming has reviewed offers on the worldwide licensing rights for rhC1INH. The acceptance of these offers by the Company would have improved short term cash flow through upfront payments but reduced long term profits from lower royalties and resulted in diminished control over rhC1INH development, its valuable flagship product in late stage clinical trials. Pharming will therefore execute licensing agreements on a market-by-market basis in the second half of 2005.
Pharming remains on target with the filing of rhC1INH for hereditary angioedema in key European markets this year. The Company will also be accelerating clinical development on new orphan drug indications given promising results with rhC1INH in animal model studies, as well as new dosage forms which will substantially increase the long term potential of the product and result in improved long term returns.
Background on Pharming Group N.V.
Pharming Group N.V. is developing innovative protein therapeutics for unmet medical needs. The Company's products include potential treatments for genetic disorders, specialty products for surgical indications, and intermediates for various applications. Pharming's lead product (recombinant human C1 inhibitor) for hereditary angioedema is in Phase III of clinical development. The advanced technologies of the Company include innovative platforms for the production of protein therapeutics, as well as technology and processes for the purification and formulation of these products. Additional information is available on the Pharming website, http://www.pharming.com.
This press release contains forward looking statements that involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from the results, performance or achievements expressed or implied by these forward looking statements.